Their bids will now be evaluated by the project sponsor, the Tyne and Wear Passenger Transport Authority (TWPTA), and its advisers.

A preferred bidder is expected to be announced by mid-April with construction work beginning in 2008.

The two consortia are Bouygues, led by Bouygues Travaux Publics, and Connect North East, led by Balfour Beatty.

TWPTA vice chairman Councillor Tom Hanson said: “This is crunch time for the bidders – their final opportunity to convince us that they are the right team to finance, design and build the second Tyne Tunnel and to maintain and operate all the tunnels under the river.

“I would like to put on record the appreciation of the TWPTA and our partners at North Tyneside and South Tyneside Councils to the two bidding consortia for their commitment to this vital infrastructure project for Tyne and Wear. The amount of work both consortia have put in to their bids has been impressive.

“I am very confident that the bids will be of a high standard and will give the TWPTA the necessary assurances about the technical and financial viability of the scheme.”

Ends

1. The announcement of a preferred bidder will be followed by a period of negotiation leading up to ‘financial close’, which is when the contract for the New Tyne Crossing will be signed, probably in the late summer/early autumn of 2007.
2. The New Tyne Crossing is the project to finance, design, build and operate a second vehicle tunnel linking the A19 under the River Tyne between East Howdon (North Tyneside) and Jarrow (South Tyneside) and to operate the existing vehicle, pedestrian and cycle tunnels for a concessionary period of around 30 years. It is a Public Private Partnership.
3. Invitations to tender for the New Tyne Crossing were issued on February 8 2006.
4. The Secretary of State for Transport approved the application by the Tyne and Wear Transport Authority (TWPTA) to go ahead with the planning and construction of the New Tyne Crossing on July 21 2005 following a Public Inquiry.
5. The second vehicle tunnel will be of immersed tube construction and is expected to take around three-and-a-half years to complete. It is currently scheduled to open in 2011. Once it is open to traffic, a major upgrade of the existing vehicle tunnel will be carried out. This is expected to take between six and nine months.
6. The Tyne and Wear Passenger Transport Authority is the sponsor of the New Tyne Crossing and is working in partnership with North Tyneside and South Tyneside Councils.